Enforcement Actions
Financial Industry Regulatory Authority (FINRA)
NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.
November 2010
Maria Alicia Wild
AWC/2010021987401/November 2010
Wild obtained a bank form a customer signed authorizing payment of the customer’s credit card bill in the amount of approximately $13,280, but after she had obtained the signed authorization form, the amount of the bill had increased by approximately $190. Wild cut the customer’s signature from the signed authorization form that authorized payment of the bill in the amount of approximately $13,280 and pasted the signature to another bank form that authorized payment of the bill in the amount of approximately $13,470, without the customer’s prior knowledge, consent or authorization.
Maria Alicia Wild: Fined $5,000; Suspended 1 month
Tags:  Credit Cards     |    In: Cases of Note : FINRA
Bill Singer's Comment

Okay -- maybe I'm missing something here.  Lemme see if I have this right.

1. Client owes a $13,280 credit card bill.

2. Wild gets signed authorization from client to pay that $13,280 bill.

3. Between hence and thence, the balance due increase by $190 to $13,470.

4. Rather than "bother" the client and resubmit the paperwork for her signature, Wild foolishly cuts and pastes the client's old signature onto a new authorization to pay the $13,470 revised bill.

Assuming that I got it all correct -- and assuming that you note that I described Wild as "foolishly" engaging in the self-help measures with the second form -- I'm not sure that this all adds up to both a $5,000 fine AND a one month suspension.  I'm am in no way excusing the "forging" of the signature or the potentially dangerous acts of failing to get a customer's prior authorization. We all clear about that?  However, it doesn't strike me that Wild's motivation was venal and I'm not sure why, say, a $500 fine would not have sent the appropriate message based upon the facts at hand.  If you wanted to toss in a 5 day suspension on top of that, go ahead.  However, regardless of FINRA's perspective, $5,000 is a lot of bucks.

September 2010
Marcia Jenay McLemore (Principal)
2008015708701/September 2010

McLemore misappropriated member firm funds by using expense reimbursements for personal expenses, charging personal expenses to her corporate credit card and failing to pay the bills on the card. McLemore’s firm had previously sent her a memorandum about deficient and late payments on her corporate credit card, reminding her that she had agreed to use the card only for corporate expenses and to pay the balance in full each month. The credit card vendor notified McLemore’s firm that her account was delinquent with a balance of $6,442.20. McLemore’s firm terminated her employment and paid the credit card balance, including the charges incurred for her personal expenses, as it was obligated to do.

McLemore failed to respond to FINRA requests for information and to appear for an on-the-record interview.

Marcia Jenay McLemore (Principal): Barred
Tags:  Expenses    Credit Cards     |    In: Cases of Note : FINRA
Bill Singer's Comment
Seriously, is FINRA a collection agent for its member firms or a regulator?  I'm am absolutely not defending McLemore's conduct but am simply wondering if this is a sensible allocation of the regulator's limited resources.  Also, will FINRA be as diligent on behalf of registered representatives who have complaints against their firm's failures to timely or fully pay them?
Steven Emery Floyd
2009016586601/September 2010

Floyd requested and received temporary automated teller machine (ATM) cards in customers’ names and used the cards to withdraw a total of more than $15,000 from the customers’ accounts without their knowledge or consent, and used the funds for his own personal use and benefit.

Floyd failed to respond to FINRA requests for documents and information.

Steven Emery Floyd : Barred
Tags:  ATM        Credit Cards     |    In: Cases of Note : FINRA
Bill Singer's Comment
FINRA did not seek restitution because Floyd’s member firm reimbursed the customers.
August 2010
Danica Danialah King
AWC/2009017881901/August 2010
King came into possession of counterfeit credit cards containing stolen consumers’ credit card information that had been electronically captured from credit cards the consumers used while dining. King used the phony credit cards to purchase gift cards and electronic items and then sold the cards and electronic items on an eBay account she controlled and operated, thereby engaging in money laundering. King failed to respond to FINRA requests for information.
Danica Danialah King: Barred
Tags:  Money Laundering    Credit Cards     |    In: Cases of Note : FINRA
Enforcement Actions